Form Ct-246 - Claim For Empire State Commercial Production Credit

Page 2 of 2 CT-246 (2012)

Instructions

New York S corporations complete only lines 1 through 3.

Temporary deferral of certain tax credits

Include the line 3 amount on Form CT-34-SH, New York

For tax years beginning on or after January 1, 2010, and before

S Corporation Shareholders’ Information Schedule, which is filed

January 1, 2013, if the total amount of certain credits that you may

with your New York State corporation tax return. Attach a copy

use to reduce your tax or have refunded to you is greater than

of Form CT-246 to your Form CT-3-S, New York S Corporation

$2 million, the excess over $2 million must be deferred to, and used

Franchise Tax Return.

or refunded in, tax years beginning on or after January 1, 2013.

Provide all shareholders with the amount of their pro rata share of

For more information about the credit deferral, see Form CT-500,

the commercial production credit calculated. The shareholders will

Corporation Tax Credit Deferral.

file their own Form IT-246 to claim the credit on their New York State

If you are subject to the credit deferral, you must complete all credit

personal income tax returns.

forms without regard to the deferral. However, the credit amount that

is transferred to your tax return to be applied against your tax due

Combined filers

or to be refunded to you may be reduced. Follow the instructions for

A taxpayer filing a combined return as a member of a combined

Form CT-500 to determine the amounts to enter on your tax return.

group is allowed to claim the commercial production credit. The

commercial production credit is computed on a separate basis, but

General information

is applied against the combined tax.

For tax years beginning on or after January 1, 2007, Tax Law

sections 28 and 210.38 provide for tax credits for qualified

Line instructions

commercial production companies. The Empire State commercial

production credit (also referred to simply as the commercial

Part 1 – Computation of commercial production credit

production credit) is available to taxpayers subject to tax under

available for use

Article 9-A (general business corporations) or Article 22 (personal

Line 1 – Obtain this amount from the New York State Governor’s

income tax). This form is for taxpayers subject to tax under

Office for Motion Picture and Television Development. Attach your

Article 9-A. Those subject to tax under Article 22, complete

certificate.

Form IT-246, Claim for Empire State Commercial Production Credit.

These credits have been extended and apply to tax years beginning

Line 2 – Obtain this amount from the partnership(s) allocating this

before January 1, 2015.

credit to you. Also complete Part 3, Partnership information.

The credit is allowed for qualified production costs paid or incurred

Line 3 – New York S corporations include this amount on

in the production of a qualified commercial in New York State. The

Form CT-34-SH.

credit is allowed for the tax year in which the production of the

Line 4 – Obtain this amount from the previous tax year’s

qualified commercial is completed. The credit may not reduce the

Form CT-246.

tax due below the fixed dollar minimum tax. Any amount not used in

the current tax year may be refunded or credited as an overpayment

Part 2 – Computation of commercial production

to next year’s tax. The refund is limited to 50% of the excess credit

in the current year; the balance may be carried forward to the

credit used, refunded, and carried forward

(New York

following tax year and may be deducted from the tax in that year. All

S corporations do not complete this part)

remaining excess after application in the succeeding year may also

Line 6 – Enter the amount from Form CT-3, line 78, or Form CT-3-A,

be refunded or credited as an overpayment to the succeeding tax

line 77, plus any net recaptured tax credits.

year. No interest will be paid on the refund. Production costs used

as the basis for allowance of this credit or used in the calculation of

Line 7 – You must apply certain credits before the commercial

this credit cannot be used to claim any other credit.

production credit. Refer to Form CT-600-I, Instructions for

The amount of credit allowed for the current tax year is allocated

Form CT-600, Ordering of Corporation Tax Credits, for the proper

ordering of your credits. If you are claiming more than one credit,

by the New York State Governor’s Office for Motion Picture

enter the total amount of credits applied against the current year’s

and Television Development. Attach a copy of your certificate

corporation franchise tax before the commercial production credit.

from that office for the credit allowed. For rules and regulations

If the commercial production credit is the only credit that is being

regarding the credit, contact the New York State Governor’s

applied against the current year’s corporation franchise tax, enter 0.

Office for Motion Picture and Television Development at

If filing as a member of a combined group, include any amount of

nyfilm@empire.state.ny.us or call (212) 803-2330.

tax credit(s), including the commercial production credit(s), being

claimed by other members of the combined group that you want to

Corporate partners

apply before the commercial production credit claimed on this form.

If you are a corporate partner who has commercial production

credits passed through to you from a partnership, enter your pro rata

Lines 11, 16, and 17 – On line 11, enter the lesser of line 5 or

share of the commercial production credits passed through to you

line 10.

from the partnership in Part 1, line 2. Also, enter the name and

If your total credits from all sources are $2 million or less, enter the

employer identification number of the partnership in Part 3. Enter on

amounts from lines 11, 16, and 17 on your franchise tax return.

line 1 only the amount of commercial production credit allocated to

your corporation by the New York State Governor’s Office for Motion

If your total credits from all sources are more than $2 million, you

Picture and Television Development.

may be subject to the temporary credit deferral. Complete lines 11,

16, and 17 but do not enter the amounts from lines 11, 16, and 17

New York S corporations

on your franchise tax return. See Form CT-500 to determine the

proper amounts to enter on your franchise tax return.

New York S corporations will calculate an amount of commercial

production credit. However, the S corporation may not use the

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commercial production credit against its own tax liability; instead,

the credit is passed through to the shareholders to use against their

See Form CT-1, Supplement to Corporation Tax Instructions.

personal income tax liabilities on their New York State tax returns.

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Form Ct-246 - Claim For Empire State Commercial Production Credit - 2012 Page 2

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